A Comprehensive Guide to the Tariff Act of 1930 and Its Impact on Trade

Definition & Meaning

The Tariff Act of 1930, also known as the Smoot-Hawley Tariff, is a federal law that establishes a harmonized tariff schedule for imports into the United States. This act grants the U.S. International Trade Commission (ITC) the authority to conduct investigations related to trade and tariffs. It allows the ITC to examine various aspects of trade relations, including the impact of export bounties, the volume of imports compared to domestic production, and competition between U.S. and foreign industries. The Act has been amended over the years, notably by the Tariff Classification Act of 1962, which modified some of its more burdensome provisions while retaining key elements that affect trade in the agricultural sector.

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Legal Use & context

The Tariff Act of 1930 is primarily relevant in the areas of international trade law and customs regulation. It serves as a foundation for various trade-related legal practices, including the enforcement of antidumping duties and countervailing duties. Legal professionals may encounter this act when dealing with import/export regulations, trade compliance, and disputes involving tariffs. Users can find templates and resources on US Legal Forms to assist with related legal documents and procedures.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

Example 1: A U.S. company imports steel from a foreign manufacturer. The ITC investigates whether the foreign company is selling the steel at below-market prices, which could lead to the imposition of antidumping duties under the Tariff Act of 1930.

Example 2: A farmer files a complaint with the ITC regarding unfair competition from imported agricultural products. The ITC may conduct an investigation to determine if countervailing duties are warranted to protect domestic producers. (hypothetical example)

Relevant laws & statutes

Key statutes related to the Tariff Act of 1930 include:

19 USCS § 1332: Outlines the ITC's authority to investigate trade relations.
Tariff Classification Act of 1962: Amended certain provisions of the original Tariff Act.

Comparison with related terms

Term	Description	Difference
Antidumping Duty	A tariff imposed on foreign imports believed to be priced below fair market value.	Antidumping duties are specific measures under the broader framework of the Tariff Act.
Countervailing Duty	A tariff imposed to counteract subsidies provided by foreign governments to their exporters.	Countervailing duties are also a specific application of the Tariff Act aimed at leveling the playing field.

Common misunderstandings

What to do if this term applies to you

If you are involved in international trade and believe the Tariff Act of 1930 may affect your business, consider the following steps:

Review your import/export practices to ensure compliance with current tariff regulations.
Consult legal resources or templates available on US Legal Forms to assist with necessary documentation.
If facing complex issues, seek advice from a legal professional specializing in trade law.

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Quick facts

Typical Fees: Varies based on the type of tariff or duty.
Jurisdiction: Federal law applicable across the United States.
Possible Penalties: Fines and additional duties for non-compliance.

Key takeaways

The Tariff Act of 1930 establishes a framework for tariffs and trade investigations in the U.S.
The ITC plays a crucial role in enforcing trade laws and conducting investigations.
Amendments to the Act have significant implications for various sectors, especially agriculture.
Understanding this act is essential for businesses engaged in international trade.
Legal resources are available to help navigate the complexities of trade regulations.